Not exactly; The IRS considers a state tax refund to mean you may have already taken a deduction and received a benefit for at least a portion of the state refund. If you did not, then there is no tax charged. If you did, then the IRS is allowed to tax the taxable portion of it.
However, TurboTax will calculate the SALT Refund based on your entries. It is not necessary to make that determination ahead of time by only including some of the details. Since your SALT paid combined with your real estate taxes is greater than $10,000, it is doubtful that 100% or even any of the refund would be taxable anyway. But, whether or not you report the subsequent refund, it is known that you received it. Not including all the details could produce unexpected results.
Any taxable portion of a prior period state tax refund would be reported on Schedule 1, line 3. Separately, the state tax amount withheld in 2020 should be entered on the 2020 Schedule A in full.
